Belgium's Euroclear to redistribute $3.4 billion from frozen Russian assets, media reports

Euroclear, the Belgian financial services giant, plans to confiscate and redistribute 3 billion euros ($3.4 billion) from frozen Russian funds to compensate Western investors whose assets were seized by Moscow, Reuters reported on May 2, citing sources familiar with the matter.

The payout, drawn from a pool of 10 billion euros ($11.3 billion) in cash frozen under EU sanctions since Russia's full-scale invasion of Ukraine, comes in response to Russia's confiscation of billions in Western-held assets over the past year, the sources said.  

The move marks an escalation in Europe's financial pressure on Moscow. This is the first instance of direct redistribution of Russian frozen funds to offset Western investor losses.

Until now, the West has relied on reallocating interest income generated from frozen Russian assets to support Ukraine. In October 2024, the Group of Seven (G7) approved nearly $50 billion in loans for Ukraine, to be repaid with proceeds from these frozen assets.

Euroclear reportedly obtained approval from Belgian authorities in March to proceed with the payments. The company informed clients about the disbursements in an April 1 document reviewed by Reuters.

Crucially, the redistribution will not impact the more than 200 billion euros ($226.9 billion) in Russian central bank reserves frozen within the European Union, two sources told Reuters.

Still, the move will reduce the bloc's stockpile of frozen Russian cash, stocks, and bonds — assets widely viewed as leverage over Moscow and a potential funding source for Ukraine's reconstruction.

The Kremlin has previously warned of retaliation if Western countries confiscate Russian assets for use in Ukraine. In early 2024, Russia amended its legislation to facilitate counter-seizures of Western-owned property.

A draft law approved in February outlines the procedure for Moscow to seize foreign assets in response to Western sanctions.

Ukraine has urged its allies, particularly the U.S. Treasury, to formalize mechanisms for using frozen Russian funds to finance Ukrainian defense and reconstruction.

Ukroboronprom posts $33 million profit as production triples

Ukraine’s largest state-owned defense company, the Ukrainian Defense Industry (Ukroboronprom), reported a consolidated net profit of Hr 1.31 billion ($31.5 million) for the previous year, according to a press release at the company’s website.

The Kyiv IndependentYana Prots